ABSTRACT
The governments of less developed countries (LDCs) are rapidly increasing their own sophistication, knowledge, and communications. If New International Economic Order (NIEO) advocates believe in any idea more tenaciously than the one about terms of trade, it is the one about multinational corporations (MNCs). Government officials of LDCs have somehow felt that in a similar vein, MNCs ought to reinvest their internally generated funds in the host countries rather than send them home. If MNCs had the supreme bargaining advantage, one would hardly have expected the extent and severity of controls that have already been placed upon them. The International Labor Organization found that the technology of MNCs in Kenya tends to be more labor intensive than that of the home companies and more labor intensive than Kenyan companies producing the same goods. More important is the communication of business methods such as management, accounting, and salesmanship, which are absorbed on a day-to-day basis by nationals who work for MNCs.
